The International Commercial Terms (Incoterms®) are a set of internationally agreed standards that define the responsibilities of exporters and importers in the sale of goods in international transactions, including the arrangement of shipments and the transfer of liability involved at various stages of the transaction.
The Incoterms® are published by the International Chamber of Commerce (ICC) and are accepted by governments, legal authorities, and practitioners worldwide for the interpretation of most commonly used terms in international (and domestic) trade. They are updated periodically, with the most recent version being published in 2020.
This version includes seven rules for any mode of transport:
EXW - Ex Works, FCA - Free Carrier, CPT - Carriage Paid to, CIP - Carriage and Insurance Paid To, DAP - Delivered at Place, DPU - Delivered at Place Unloaded and DDP - Delivered Duty Paid.
As well as four rules for sea and inland waterway transport:
FAS - Free Alongside Ship, FOB - Free on Board, CFR - Cost and Freight and CIF - Cost Insurance and Freight.
So whether you're looking for guidance on how to document, insure or transport goods, the Incoterms rules can help.
